"I don't think that you can even begin to compare him to someone who played in our day because he is himself, he has set his own standard," said Dalglish.
"He has got a bit of everyone in him, a bit of everything. He has got an incredible talent and he has got all the ingredients to be a hugely successful footballer.
"He has achieved so much already and you can never take away from him that he led Liverpool to a Champions League final victory, which puts him up there.
"I don't want to undermine anything that Steven has already achieved because what he has done deserves recognition, but I think he will get better. Stevie, particularly last year, lifted the whole team with what he did on the pitch, pulling the side through as a real leader. But he'll get more educated in the game with the more matches he plays, and that's great for Liverpool and frightening for the opposition.
"He's got the basic stuff there that's made him the great player he is, but I think he might just step up a wee bit more... and when you think where he is already, that is frightening."